Friday, January 7, 2011

Hap Seng to raise RM1.46b from private placement, rights issue

KUALA LUMPUR: HAP SENG CONSOLIDATED BHD [] plans to raise up to RM1.46 billion for a corporate exercise which includes RM808.21 million from a private placement and another RM654.54 million from a rights issue.

The company said on Friday, Jan 7 it had proposed to place out up to 124.53 million new shares at an issue price of RM6.49 per placement share, which was a 10% discount to the five-day volume weighted average price up to and including Jan 6 of RM7.21.

"The proposed placement is expected to raise gross proceeds of approximately RM808.21 million," it said.

Of the RM808.21 million to be raised from the private placement, it said RM240 million would be for capital expenditure, RM300 million for repaying the borrowings and the remaining RM268.21 million as general working capital, corporate purposes and estimated expenses.

Hap Seng said it planned to place out the shares via a bookbuilding exercise to third party investors to be identified. CIMB and UBS AG have been appointed as the joint global coordinators for the proposed placement.

It also proposed a bonus issue of up to 1.494 billion new shares on the basis of two bonus shares for every one share held after the proposed placement.

It would also undertake a renounceable rights issue of up to 448.31 million new shares together with up to 448.31 million new free detachable warrants. This would be on the basis of one rights share with one warrant for every five shares held after the proposed bonus issue.

Hap Seng said based on the proposed rights issue with warrants of up to 448.315 million rights shares together with up to 448.315 million new warrants at an issue price of RM1.46 per rights share, the exercise was expected to raise up to RM654.54 million.

Of the RM654.54 million, it said RM220 million would be used to expand its business operations and acquire potental land for development, RM200 million to repay borrowings, RM234.54 million as general working capital.

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